68. Liability in case of company under liquidation.
(1)Every person-(a)Who is a liquidator of any company liable for any dues under this Act which is being wound up, whether under the orders of a Court or otherwise; or(b)(b)Who has been appointed as the receiver of any assets of a company liable for any dues under this Act (hereinafter referred to as liquidator),shall, within thirty days after he has become such liquidator, intimate the fact of his appointment as such to the Commissioner.(2)The Commissioner shall, after making such inquiries or calling for such information as he may deem necessary, notify to the liquidator within there months from the date on which he received the intimation of the appointment of the liquidator, the amount which, in the opinion of the Commissioner, would be sufficient to discharge the liability of the company for any tax including interest and penalty, if any, which is then, or is likely thereafter to become, payable by the company.(3)The liquidator shall not part with any of the assets of the company or the properties in his hand, until he has been notified by the Commissioner under sub-section (2) and, on being so notified, he sets aside an amount equal to the amount notified:Provided that nothing contained in this sub-section shall debar the liquidator from parting with such assets or properties in compliance with any order of a court or for the purpose of payment of tax, interest and penalty, if any, payable by the company under this Act or for meeting such costs and expenses of the winding up of the company as are in the opinion of the Commissioner reasonable.(4)If the liquidator fails to intimate in accordance with sub-section (1) or fails to set aside the amount as notified by the Commissioner under sub-section (3) or parts with any assets of the company or the properties in his hand in contravention of the provisions of sub-section (3), he shall be personally liable for the payment of tax including interest and penalty, if any, which the company would be liable to pay under this Act:Provided that where the amount of tax including interest and penalty, if any, payable by the company is notified under sub-section (2), the personal liability of the liquidator under this sub-section shall be to the extent of such amount.(5)Where there are more than one liquidator, the obligations and liabilities attached to the liquidator under this section shall be attached to all the liquidators jointly and severally.(6)When any private company is wound up and any tax including interest and penalty, if any, determined under this Act on the Company for any period, whether before or in the course of or after its liquidation, cannot be recovered, then every person who was a director of the private company, except the Government nominee directors, if any, at any time during the period for which the tax including interest and penalty is due, shall be jointly and severally liable for payment of such dues, if any, unless he proves to the satisfaction of the Commissioner that non-recovery cannot be attributed to any wilful neglect, misfeasance or brach of duty on his part in relation to the affairs of the company.(7)The provisions of this section shall have effect notwithstanding anything to the contrary in any other law for the time being in force.(8)For the purposes of this section, the expression 'Company' and 'Private company' shall have the meaning respectively assigned to them under Clauses (i) and (ii) of sub-section (1) of section 3 of the Companies Act, 1956 (1 of 1956).
